The Gibson News

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson is a defendant in at least five lawsuits
filed in California and Washington D.C., part of a
spate of legal action dating back to last year that
targets industry groups, according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging cooperation
among competitors to artificially boost prices.
Plaintiffs’ attorneys say that’s a violation of the
Sherman Antitrust Act.

“The Sherman Act was
enacted to promote competition (in) the U.S. market,
because competition provides consumers with the best
price possible,” said Hollis Salzman, a partner at
New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association, but
Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the Sherman
Act or other laws, according to attorney Paul Cuomo
of the Washington D.C. law firm
Howrey LLP. He said the association was unable
to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since September,
however, have said the suits are without merit and
contain misinformation about the association and its
members.

“They are a detriment to the music industry, to
music makers and to music lovers everywhere,” the
association said in a September statement.

The lawsuits are widespread, whether legitimate
or frivolous. Scott Robertson, a spokesman with the
industry group, said he was aware of nearly 30
lawsuits making similar allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group. The
group agreed not to in any way encourage the sharing
of price information or other cooperation on such
matters, according to the agreement, which
stipulates that it is not an admission of guilt.

Authorities are in the process of consolidating
the various allegations into one class-action
lawsuit, for pre-trial proceedings in California,
attorneys said

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson is a defendant in at least five
lawsuits filed in California and Washington
D.C., part of a spate of legal action dating
back to last year that targets industry groups,
according to court records.

The suits, listed
under various defendants who bought guitars in
recent years, allege that the
National Association of Music Merchants, an
industry group, held discussions at meetings of
manufacturers and retailers encouraging
cooperation among competitors to artificially
boost prices. Plaintiffs’ attorneys say that’s a
violation of the Sherman Antitrust Act.

“The Sherman Act
was enacted to promote competition (in) the U.S.
market, because competition provides consumers
with the best price possible,” said Hollis
Salzman, a partner at New York law firm
Labaton Sucharow, which is representing
plaintiff Craig Kennedy.

The suits focus
largely on national instrument retailer
Guitar Center, as well as the association,
but Gibson and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline
Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry
association, however, denies violating the
Sherman Act or other laws, according to attorney
Paul Cuomo of the Washington D.C. law firm
Howrey LLP. He said the association was
unable to comment further because of the pending
litigation, including on whether it hosted
discussions as described in the lawsuits.

Statements by the association since
September, however, have said the suits are
without merit and contain misinformation about
the association and its members.

“They are a detriment to the music industry,
to music makers and to music lovers everywhere,”
the association said in a September statement.

The lawsuits are widespread, whether
legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was
aware of nearly 30 lawsuits making similar
allegations.

Some stem from a Federal Trade Commission
investigation which ended with a 2009 agreement
between the government and the industry group.
The group agreed not to in any way encourage the
sharing of price information or other
cooperation on such matters, according to the
agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of
consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings
in California, attorneys said.

Gibson Guitar Corp. is embroiled in a
series of lawsuits accusing the Nashville manufacturer and various other
organizations of rigging prices across the country.

Gibson is a defendant in at least five lawsuits filed in California and
Washington D.C., part of a spate of legal action dating back to last year that
targets industry groups, according to court records.

The suits, listed under various defendants who bought guitars in recent years,
allege that the National Association of Music Merchants, an industry group, held
discussions at meetings of manufacturers and retailers encouraging cooperation
among competitors to artificially boost prices. Plaintiffs’ attorneys say that’s
a violation of the Sherman Antitrust Act.

“The Sherman Act was enacted to promote competition (in) the U.S. market,
because competition provides consumers with the best price possible,” said
Hollis Salzman, a partner at New York law firm Labaton Sucharow, which is
representing plaintiff Craig Kennedy.

The suits focus largely on national instrument retailer Guitar Center, as well
as the association, but Gibson and fellow manufacturers Fender and Yamaha appear
as co-defendants. Caroline Galloway, a spokeswoman for Gibson, could not be
reached for comment.

The industry association, however, denies violating the Sherman Act or other
laws, according to attorney Paul Cuomo of the Washington D.C. law firm Howrey
LLP. He said the association was unable to comment further because of the
pending litigation, including on whether it hosted discussions as described in
the lawsuits.

Statements by the association since September, however, have said the suits are
without merit and contain misinformation about the association and its members.

“They are a detriment to the music industry, to music makers and to music lovers
everywhere,” the association said in a September statement.

The lawsuits are widespread, whether legitimate or frivolous. Scott Robertson, a
spokesman with the industry group, said he was aware of nearly 30 lawsuits
making similar allegations.

Some stem from a Federal Trade Commission investigation which ended with a 2009
agreement between the government and the industry group. The group agreed not to
in any way encourage the sharing of price information or other cooperation on
such matters, according to the agreement, which stipulates that it is not an
admission of guilt.

Authorities are in the process of consolidating the various allegations into one
class-action lawsuit, for pre-trial proceedings in California, attorneys said.

Gibson is a defendant in at least five lawsuits filed in
California and Washington D.C., part of a spate of legal
action dating back to last year that targets industry
groups, according to court records.

The suits, listed under
various defendants who bought guitars in recent years,
allege that the
National Association of Music Merchants, an industry
group, held discussions at meetings of manufacturers and
retailers encouraging cooperation among competitors to
artificially boost prices. Plaintiffs’ attorneys say that’s
a violation of the Sherman Antitrust Act.

“The Sherman Act was enacted
to promote competition (in) the U.S. market, because
competition provides consumers with the best price
possible,” said Hollis Salzman, a partner at New York law
firm
Labaton Sucharow, which is representing plaintiff Craig
Kennedy.

The suits focus largely on
national instrument retailer
Guitar Center, as well as the association, but Gibson
and fellow manufacturers
Fender and
Yamaha appear as co-defendants. Caroline Galloway, a
spokeswoman for Gibson, could not be reached for comment.

The industry association,
however, denies violating the Sherman Act or other laws,
according to attorney Paul Cuomo of the Washington D.C. law
firm
Howrey LLP. He said the association was unable to
comment further because of the pending litigation, including
on whether it hosted discussions as described in the
lawsuits.

Statements by the association since September, however,
have said the suits are without merit and contain
misinformation about the association and its members.

“They are a detriment to the music industry, to music
makers and to music lovers everywhere,” the association said
in a September statement.

The lawsuits are widespread, whether legitimate or
frivolous. Scott Robertson, a spokesman with the industry
group, said he was aware of nearly 30 lawsuits making
similar allegations.

Some stem from a Federal Trade Commission investigation
which ended with a 2009 agreement between the government and
the industry group. The group agreed not to in any way
encourage the sharing of price information or other
cooperation on such matters, according to the agreement,
which stipulates that it is not an admission of guilt.

Authorities are in the process of consolidating the
various allegations into one class-action lawsuit, for
pre-trial proceedings in California, attorneys said.

The Internal Revenue Service filed a lien
against the legendary guitar manufacturer Monday
for $445,994 in unpaid corporate and payroll
taxes dating back to 2006.

The lien, filed with the Davidson County
Register of Deeds, shows Gibson with unpaid 2006
payroll taxes totaling $3,350 and two years of
corporate income taxes of $442,644 from 2007 and
2008.

It's the latest chapter in a string of
troubles for the music instrument icon. In
November 2009, agents from the U.S. Fish and
Wildlife Service raided Gibson's Massman Road
manufacturing center.

Sources told NashvillePost.com the
Nashville-based guitar manufacturer was under
investigation for violating the Lacey Act, a key
piece of environmental law, for importing
endangered species of rosewood from Madagascar.

Rosewood is widely used in the construction
of guitars and sells for $5,000 per cubic meter,
more than double the price of mahogany. The
island nation off Africa's east coast is a key
producer of the hardwood, the export of which
has links to international criminal activity.

In a statement, the company said it was fully
co-operating with the investigation and, to
date, no charges have been filed.

More recently, Debtwire reported
that Gibson's main lenders are pushing CEO Henry
Juszkiewicz to
improve his company's governance standards
and that they're weighing tighter
standards. Some also signaled they may at some
point consider forcing a restructuring at
Gibson.

Federal agents raid
Gibson's Nashville guitar plant.

amid concerns about source of
harvested wood !!

By Associated Press 6:34 PM CST, November 17, 2009
NASHVILLE, Tenn. (AP) — Federal agents have raided a Gibson guitar
manufacturing plant and seized guitars amid concerns about where the
Nashville-based company obtains the woods that go into its
instruments.

Television stations reported Tuesday that authorities seized wood
guitars and other items, but no charges have been filed.

Neither the U.S. attorney's office nor Gibson officials immediately
returned a call from The Associated Press for comment.

Gibson issued a statement saying the company is cooperating with the
U.S. Fish and Wildlife Service "as it pertains to an issue with
harvested wood."

Guitars and other musical instruments are often built from tropical
hardwoods. Amid rain forest depletion, such woods are increasingly
the focus of tight controls.
Gibson Guitars Raided For Receiving Illegal Wood

Sources say the Nashville-based guitar manufacturer is charged with
violating the Lacey Act, a key piece of environmental law, for
importing endangered species of rosewood from Madagascar. Rosewood
is widely used in the construction of guitars and sells for $5,000
per cubic meter.

Hey Ed,
I hope everything is nice in Nevada. Here's an interesting story I
read on the internet just now. I don't think you will be surprised
when you read it:
http://www.switched.com/2008/03/21/gibson-sues-rock-band-creators-wal-mart-and-other-retailers/

They are spending money suing video game makers instead of, oh I
don't know, focusing on music. I don't know if you follow game
stories, but this "Guitar Hero" is huge for Gibson. You have
probably at least seen the fake little game controllers shaped like
Les Pauls and SG's with five color coded buttons on them. You are
supposed to push the buttons in the sequence in which they show-up
on the screen and you have to hit them at the right time in order
not to suck. Then you will be a guitar God. Why the hell don't these
kids get a damn guitar and learn to play a few riffs? You have to
give credit to Gibson though, by putting their name on the
controller it will hugely influence a first time guitar buyer into
getting one of their crappy axes. Here's the funniest story now.
There are companies on the Net that actually make "custom" game
controllers! Oh yeah, you can have any picture or design you want on
your custom Gibson shaped game controller.

Anyway thought you would like to read an interesting story. What do
you think of this Robot Guitar Gibson has? Another way to lure in
newbie guitar players who don't want to learn to tune a guitar or
any of that traditional stuff. Some gimmicks are great and some suck
donkey balls.

Lem Smalley

By

01-27-2010 3:38 PM —

Iconic Nashville-based guitar manufacturer Gibson
said claims it colluded with other manufacturers and
a retailer in a price-fixing scheme are "wholly
without merit."

Gibson, along with competitors Yamaha and Fender,
retailer Guitar
Center, and the National Association of the
Music Merchants, an industry group, are charged in a
number of lawsuits in California and Washington,
D.C., alleging a conspiracy to secure higher retail
prices. The suits are filed under the names of
various purchasers of guitars and are expected to be
treated as a class action.

The suits allege Gibson and the others, meeting
under the guise of NAMM, set mandatory minimum
prices for their products. Violation of those deals,
the suit claims, would lead to the guitar companies
ending their dealings with stores. Guitar Center,
which controls more than 40 percent of the market in
guitars, banjos and other fretted instruments, was
ultimately the beneficiary at the detriment of
smaller chains and independent stores.

The plaintiffs allege a violation of the Sherman
Anti-Trust Act, but Gibson said the suits are
meritless.

"These lawsuits stemmed from an investigation by
the Federal Trade Commission that lasted several
years and was not pursued by the FTC after they
concluded the investigation. The allegation that
Gibson participated in any scheme to artificially
inflate or fix prices is wholly without merit," the
company said in a press release.

The FTC investigated the NAMM between 2005 and
2007. Last year, the trade group accepted a consent
order from the feds to cease and desist activities
which might violate federal anti-trust laws and
agreed to not encourage the sharing of price
information. The consent order stipulates NAMM's
agreement is not an admission of guilt.

In its statement, Gibson said the lawsuits may,
in fact, lead to a price increase.

"Unfortunately, that process will undoubtedly
result in high costs to many organizations that,
like Gibson, strive to provide music lovers
everywhere with quality instruments, and
aggressively compete on price," the release
continues.